How to Achieve Sustainable ROI with TMS

Transport Management System (TMS) has been implemented by many shippers as a way to decrease costs and increase efficiency. TMS is able to find the best solutions which can be used to move freight and no other supply chain application offers as many methods to reduce costs or drive value. There are however other measures you can make use of in order to maximize your return on your TMS investment.

In order to calculate the ROI of a TMS, we need to list the essential components and resources used to invest in TMS versus the total savings that were experienced as a result of TMS implementation. This ROI is experienced in some key areas such as:


  1. Increasing of best carriers can increase savings by 2- 4%.
  2. Collecting and analyzing data that is then used for better business decision making then contributed to savings of 2- 4 %.
  3. Having the ability to choose the lowest cost freight mode contributes to savings of 2- 4 %.
  4. Choosing load optimization can contribute to savings of 2- 4 %.
  5. Choosing better routes for freight contributes to savings of 2– 4%.
  6. Decreasing carrier overcharges contributes to savings of just under 2%.


Ways to Maximize the ROI of Your TMS

 When TMS is implemented correctly, you can expect to see greater returns on your investment. To maximize your returns you can follow the strategies offered below.


  1. Begin with a full ROI analysis


Conducting a full ROI analysis for a TMS is crucial whether you are still in the process of finding the right TMS for you or whether you are ready to begin with the implementation process. It will assist with figuring out when you can expect to break even on your investment as you would have calculated all the potential costs you will incur for the TMS and the projected savings that will come with implementing the software.


  1. Define the mission and the objectives


Before the business implements a TMS system they need to be aware of what their end goal is and envision what success will look like for the business. This entails defining what its mission and objectives are. For example, if the objective is reducing freight costs then everyone should be aware of this and there should be no miscommunication or confusion.


  1. Guarantee an executive buy-in


Before implementing TMS, ensure that all stakeholders agree that it is necessary for the business before it goes live. This executive buy-in will ensure that there is no conflict in the future when it is eventually implemented and it will remove potential roadblocks that might occur as well.


  1. Have a clear plan of action


It is essential that there is a clear plan that states the different roles that everyone has for the implementation project. All members should meet regularly to discuss the progress that has been made, any challenges that they are experiencing and come up with solutions to resolve the trials. This ensures that things run smoothly and everyone remains accountable for any mishaps that might occur during the process.


  1. Anticipate changes


Preparing for the changes that will occur during the implementation process can only be done through change management. Every member of the team needs to understand what is happening and when it will occur, so the communication needs to be prioritized. They need to understand how these changes will impact their daily operations so that they can also adopt strategies to adjust.


  1. Analyze current TMS processes


Though TMS is able to bring about better processes for the business, this will not happen if this new technology is added onto outdated processes. Outdated processes will likely prevent the new technology from creating any value therefore look for ways to improve any of these current processes in order to get the best of the TMS.


  1. Make use of the cloud


Cloud-based TMS can be implemented a lot quicker and usually takes between a couple of weeks to a few months. An added benefit is it is easily accessible to multiple groups from multiple locations. Any feature updates occur automatically without interrupting the workflow when they occur.


  1. Focus on training


Your TMS will play a major role in your logistics workflow so it is essential that everyone understands how it operates. This means that you should invest in offering training for employees so that the implementation is successful. The skills they will gain will be invaluable for their career and it will guarantee the system’s success.


  1. Track your success


After you have implemented your TMS, track the success. Check to see if it is meeting the objectives that you aimed to achieve. This can be done by documenting the progress and communicating the results to the team members and stakeholders. Communicate with stakeholders when you have also reached the break-even point of your costs, this will assist with building a case for any future investments.


  1. TMS Transport Optimization


Your TMS should include optimization as it increases the system functionality. This will assist in maximizing your ROI so check that the system includes proven optimization capabilities.



 The way you choose to implement your TMS can affect the returns you experience. You can follow the strategies offered above in order to save costs and have a smoother implementation process.